The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 10 lakh each on Woodstock Broking Private Limited, Marfatia Stock Broking Private Limited and their respective directors, Suresh Kanmal Jajoo and Nishil Surendra Marfatia — a combined Rs 40 lakh — for facilitating front-running of trades placed by Axis Mutual Fund by enabling unauthorised access to their trading terminals, LiveLawBiz reported. The order was passed on November 3, 2026, by Adjudicating Officer Jai Sebastian.

Source: LiveLawBiz

SEBI directed the four entities to pay their penalties within 45 days of receiving the order, The420 reported. The regulator held that the brokerages violated the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, by providing the technical facilities and trading infrastructure that facilitated the illicit transactions.

Source: The420

Rs 40 lakhTotal penalty across the four entities
Rs 10 lakhPenalty on each brokerage and each director
45 daysTime given to pay after receiving the order
Apr 2021 - Mar 2022Period of trades SEBI investigated

Terminals run from a computer in Dubai

Adjudicating Officer Jai Sebastian held that the two stock brokers had facilitated the installation and operation of their ODIN trading terminals on a computer used by Prijesh Kurani in Dubai, LiveLawBiz reported. The officer also held that the expression 'dealing in securities' under the PFUTP Regulations covers acts of providing assistance to securities transactions, which is how the brokerages' role in enabling the trades was brought within the violation.

Source: LiveLawBiz

How the front-running allegedly worked

SEBI investigated allegations of front-running of trades placed by Axis Mutual Fund between April 2021 and March 2022. The investigation found that Viresh Joshi, then Chief Dealer of Axis Mutual Fund, allegedly shared confidential information about impending trades with Prijesh Kurani, who used the information to execute trades through multiple trading accounts, LiveLawBiz reported. Front-running — trading on advance knowledge of a large client's pending orders — is prohibited because it distorts markets and disadvantages ordinary investors.

Source: LiveLawBiz

The action was triggered after SEBI's surveillance systems flagged suspicious transactions conducted ahead of significant orders placed by Axis Mutual Fund, The420 reported. SEBI also closed the adjudication proceedings against six other noticees in this matter without imposing monetary penalties, according to reports of the order.

Source: The420

Separate from the main July order

The November 3 penalty is a separate adjudication concerning the brokerages' role, and should not be confused with SEBI's broader final order of July 24, 2026 in the main Axis Mutual Fund front-running proceedings, in which SEBI dealt with the substantive allegations against the principal entities and barred former chief dealer Viresh Joshi and several others from the securities market for periods ranging from three to seven years, LiveLawBiz and NextIPOIndia reported.

Source: NextIPOIndia